Performance Contracting and Sustainable Management of the Municipal Water Infrastructure

Performance Contracting (PC) is a design-build model with a measurement and verification component built into it. Energy service companies (ESCOs) or qualified contractors (qualified contractor) use this model under state applicable requirements to identify, develop, and implement energy and process-related facility improvement measures (FIMs). Performance Contracting has been applied to water and wastewater infrastructure, including water intakes, water treatment plants, water distribution, metering upgrades, wastewater treatment, and disposal of residuals. The Performance Contracting model identifies potential electrical, chemical, and other operational savings. Some states allow owners to make capital contributions to take advantage of the savings component, thereby allowing projects to proceed that would have otherwise been put off until a capital improvement program (CIP) could be approved. Performance Contracting also allows for upgrade of heating, ventilation, and air-conditioning (HVAC) systems; lighting upgrades; automation of systems; and an effective consideration for implementation of renewable energy systems. A comprehensive Performance Contracting project would effectively create a positive cash flow to be achieved within a stipulated time frame, as agreed upon by the owner. This paper addresses the components of the Performance Contracting model that effectively provides the much needed improvements to municipal infrastructure in the United States. It identifies the elements of Performance Contracting for municipal infrastructure projects and includes details of PC design-build model, qualified contractor qualification, detailed technical audit of municipal facilities, and project development with verified savings. It also includes municipal facility improvement applications at water intake facilities, drinking water treatment operations, and metered finish-water product distribution; wastewater collection and treatment; residuals management; financing of Performance Contracting projects, predictive maintenance, and training components; and the responsibilities of the selected qualified contractor. The authors believe Performance Contracting utilizing the cost savings with measurement and verification components will support the accomplishment of much needed municipal infrastructure upgrades across the United States.